Order 2010

- 3

- 8

Served: March 8, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 8 th day of March, 2010

Fitness Determination of

CHARTER AIR TRANSPORT, INC.

as a commuter air carrier under section

49 U.S.C. 41738 Docket DOT

- OST

- 2009

- 0187

ORDER TO SHOW CAUSE

PROPOSING ISSUANCE OF COMMUTER AIR CARRIER AUTHORITY

Summary

By this order, we tentatively find that Charter Air Transport, Inc. ( “ CAT ” )

, is a citizen of the United States and is fit, willing, and able to conduct scheduled passenger operations as a

commuter air carrier.

Background

Section 41738 of Title 49 of the U nited States Code (“the Statute”) and section 298.21(d) of the Department’s Aviation Economic Regulations direct us to determine whether companies proposing to provide scheduled passenger service as commuter air carriers are “fit, willing, and able to perf orm the service,” and to ensure that all operations relating to this service conform to the safety standards established by the Federal Aviation Administration ( “ FAA ” ). In making fitness findings, the Department uses a three

- part test that reconciles the Airline Deregulation Act’s liberal entry policy with Congress’ concern for operational safety and consumer protection. The three areas of inquiry that must be addressed in order to determine a n air carrier’s fitness are whether the applicant: (1) will hav e the managerial skills and technical ability to conduct the proposed operations, (2) has sufficient financial resources to commence the operations proposed without posing an undue risk to consumers or their funds, and (3) will comply with the Statute

and regulations imposed by federal and state agencies. We must also determine that the applicant is a U.S. citizen.

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N2

On August 7, 2009

, CAT filed an application in Docket DOT

- OST

- 2009

- 0187 for authority to provide scheduled passenger operations as a commute r air carrier pursuant to section 41738 of

the Statute. CAT accompanied its application with the fitness information required by section 204.3 of our regulations. 1

No answers were filed to the application and no other issues regarding the applicant hav e come to our attention. Under these circumstances, we propose to decide the issue of the applicant's

fitness on the basis of the written record. U pon review of the information in the application and the safety and compliance information on the air carrie r received from the FAA, we tentatively

conclude that CAT is a U.S. citizen and has met the fitness test to conduct commuter operations. We will, however, give interested parties an opportunity to show cause why we should not adopt

as final our tentative determination that CAT is fit, willing, and able to provide commuter

service.

FITNESS

The Company

B ased in Cleveland, Ohio

, CAT was incorporated on March 25, 1997 , under the laws of the State

of Colorado

. 2 The applicant currently operates out of Sanford, Florida, as an air taxi under Part 298 of the Department’s rules

, and holds a Part 135 certificate from the FAA u sing a fleet of eight small aircraft : four 30

- seat EMB

- 120 aircraft, two 9

- seat Cessna Citations, one 9

- seat Beechjet 400A, an d one 9

- seat Hawker 850XP. 3 CAT provides on

- demand charter service to casinos, NASCAR teams, collegiate spo rts teams, and businesses under a long

- term contract with SCG Travel, Inc. d/b/a Gold Transportation Services (“SCG Travel/Harrah’s”). 4 CAT is

owne d by Aviation Holding Company, Inc. ( “ AHC ” ) (99.7 percent) and Mr. Al Hillman (0.3 percent), both U.S. citizens. 5

Managerial Competence

Mr. Michael Hoyle and Mr. David Lucas serve as CAT’s two key management personnel and the company’s two Directors. Specifically , Mr. Hoyle is the company’s President and Chief

Executive Officer ( “ CEO ” )

, and Mr. Lucas is the company’s Vice President, Secretary, Treasurer and Chief Financial Officer ( “ CFO ” ).

In addition, the following individuals comprise CAT’s team o f key technical personnel:

Mr. Gregory Rupp

– Director of Operations

Mr. Van Dreiman

– Director of Maintenance

1 CAT filed information supplementing its application on November 3, 2009.

2 CAT was formed on March 25, 1997, under the name Gelana Air Services, Inc. (“Gelana”). Gelana was sold in 2001 and its name was changed to Lakeland Air Transport, Inc. (“Lakeland”). In October 2005, Lakeland was acquired by AHC, and in March 2006, the company’s name was changed to Charter Air Transport, Inc.

3 Small aircraft is defined as any aircraft originally designed to have a maximum passenger capacity of less than 60 seats or a payload capacity of no more tha n 18,000 pounds.

4 SCG Travel/Harrah’s acts as an agent for Harrah’s Entertainment, Inc.

5 CAT’s ownership is further discussed under the CITIZENSHIP section of this order.3

Mr. Leonard Lyons

– Chief Pilot Mr. Richard Stranger

– Chief Inspector

Mr. Michael Hoyle has been CAT’s Director, CEO

, and President since October 2005. He is also President, CEO, and Director for AHC, CAT’s majority shareholder, as well as o wn er and President of Business Aircraft Group ( “ BAG ” ), an aircraft management company. Mr. Hoyle was previously employed by BP America, Inc

., 6 and over a span of 15 years, he held 4 positions with that company, including Project Manager (1992), Chief Pilot (1987

- 1995), Lead Pilot (1985

- 1987), and Safety Pilot (1980

- 1985). He holds a Bachelor of Science degree in

Aer onautical Scie nce and Aviation Management from Embry

- Riddle Aeronautical University.

He is also an Airline Transport Pilot with approximately 10,000 flight hours.

Mr. David Lucas has been CAT’s Director, Vice President, Secretary, Treasurer , and CFO since

October 2005 . Mr. Lucas has also served as Vice President, Secret ary, Treasurer and CFO of ACH, C A T’s majority shareholder, sin ce October 2005. He has nearly 15 years of experience holding leadership positions in various companies

, including SmartData, Inc., where h e served as Vice President and CFO ( 2005); B AG where he served as Director of Finance a n d Administration (2003

- 2005) ; Viewpoint Aviation Corporation, where he served as President and Chief Operating Officer ( “ COO ” ) (2000

- 2003); Mergent Technologies , where he served as President, CEO, Secretary and Treasurer (1998

- 2003) ; Cleveland Telecommunications Corporation, where served as Vice President, COO, CFO, Secretary, and Treasurer (1992

- 1998); and Star Services, Inc., where he served as the Director of Operati ons (1991

- 1992). Mr. Lucas

holds a Bachelor of Science de gree in Business Administration from John C arroll University.

Mr. Gregory Rupp, CAT’s Director of Operations, joined the company in April 2006. Having more than 10 years of aviation experience, Mr. Rupp is an Air line Transport Pilot and an Airframe and Powerplant ( “ A&P ” ) Mechanic. Mr. Rupp was previously employed by Comair Airlines as a pilot ( 1998

- 2004) and an A& P technician (1995

- 1998). Before that, he served as Line Supervisor for SkyTree Av iation (1994

- 1995). He also served in the United States Air Force for 10 years (1984

- 1994). Mr. Rupp holds a Bachelor of Science degree from the Community College of the Air Force.

Mr. Van Dreiman , an A&P M echanic, has been CAT’s Director of Maintenance since 2006.

Mr. Dreiman has 20 years of experience in aviation maintenance. Prior to joining CAT, he was Director of Maintenance at FK Air. Before that, he w as Maintenance Supervisor for Air Services of Cleveland (2004

- 2005), Director of Engineering for Ultra Narrow Band Technologies (2000

- 2003), Director of Maintenance for Dreiman Aviation, Inc. (1995

- 2000), and Lead Mechanic for Continental Express (1989

- 1995). Mr. Dreiman holds an Associate of Science degree in Aviation Maintenance Technology.

Mr. L eonard Lyons, an Airline Transport Pilot with more than 11,000 flight hours , has been CAT’s Chief Pilot since June 2008. Before coming to CAT, he was a pilot with Comair Airlines for 17 years (1990

- 2007). 7

6 BP America, Inc., was previously known as The Standard Oil Company, Inc. Mr. Lyons holds a Bachelor of Science degree in Business Administration and an Associate of Arts degree in Aviation Technology from Ohio University.

7 Mr. Lyons was retired from July 2007 until June 2008 when he joined CAT.4

Mr. Richard St anger , an A&P M echanic and commercial pilot, joined CAT in 2005 as the company’s Chief Ins pector . Before coming to CAT, he was Chief I nspector for Plays Air, Inc. (2003

- 2005). For five years, Mr. Stanger owned and operated his own aviation consulting business (1995

- 1996 and 1999

- 2003). He also served as the Director of Quality Control for

Bu siness Express Airlines, Inc

. (1996

- 1999); Manager of Technical and Engineering Support for Embraer Aircraft Corp. (1986

- 1996); and Field Service Engineer for Fairchild Aircraft Corp. (1979

- 1986). Mr. Stanger holds a degree in Mechanical Engineering from Stephen’s School of Aeronautics and Engineering.

In view of the experience and background of the applicant’s key personnel, and the fact that they are currently conducting operations similar to those proposed, we tentatively conclude that CAT

has demonstr ated that it has the management skills and technical ability to conduct its proposed scheduled service operations using small equipment

. 8

Operating Proposal and Financial Condition

As previously stated, CAT provides on

- demand charter flights under a long

- term contract with

SCG Travel/Harrah’s. SCG Travel/Harrah’s controls CAT’S marketing and ticketing of the flights, some of which are offered for sale under the Department’s Public Charter Regulations (14 CFR Par t 380). If granted the commuter authority it seeks, CAT plans to provide scheduled passenger service, operating two round trip charter flights per day between Republic Airport in Farmingdale, New York, and Atlantic City International Airport in At lantic City, New Jersey,

under the terms of the SCG Travel/Harrah’s agreement. CAT expects these flights to be marketed as public charter flights with CAT being the direct air carrier. 9

Under the terms of its agreement with SCG Travel/Harrah’s, CAT is pa id an agreed upon hourly rate for providing aircraft, crew, maintenance, and insurance ( “ ACMI ” ) for the charter flights. Also, other variable costs associated with the flight, such as fuel, catering, ground handling, and landing fees are paid by the chart er er

.

CAT provided a forecast of its first

- year expenses for the proposed commuter operations

, projecting that it will incur approximately $304,522 in first

- year expenses , $161,078 of which will be paid by SCG Travel/Harrah’s under the terms of its ACMI agreement

. 10

8 Before authorizing an air carrier to conduct air transportation operations, the FAA also evaluates certain of the air carrier’s key personnel with respect to the minimum qualifications for those positions a s prescribed in the Federal Aviation Regulations. The FAA’s evaluation of these key personnel provides an added practical and in

- person test of the skills and technical ability of these individuals. The FAA has advised us that CAT’s management personnel are qualified and acceptable for their positions. The applicant

d oes not expe c t to incur any of the costs associated with expanding its existing air taxi operations to commuter operations since it will operate the same or similar aircraft currently used in its air taxi operations and the necessary infrastructure is in place, including management and key

9 CAT has filed a public charter prospectus in connection with this application.

10 Although the applicant notes that $161,078 of the air carrier’s projected expenses will be paid by SCG
Travel/Harrah’s, for the purposes of determining the air carrier’s financial fitness to conduct its proposed scheduled service, the Department will base its financial fitness test on the total operating expenses expected to be incurred by

the air carrier.5

technical personnel and maint en ance facilities. Based on these forecasts, we find CAT’s expense projections to be reasonable and estimate that CAT will need approx imately $76,130 to mee t the Department ’ s financial fitness criteria

. 11

In support of its ability to fund its proposed commuter operations, CAT submitted an income

statement for the 6

- month period ended June 30, 2009

, showing operating revenues of $3.2 million and net income of $80,623. The air carrier also provided a balance sheet as of June 30, 2009, that reflected working capital of $928,344 and total equity of $89,850. CAT also provided third

- party verification of funds the air carrier has on depos it.

I t appears that, at present, CAT has available funds adequate to cover the financial requirements for its commuter operations. Therefore, we tentatively conclude that CAT will have access to resources sufficient to allow it to commence the proposed c ommuter operations without posing an undue risk to consumers or their funds. However, we will require that the company provide updated financial information showing that CAT continues to have funds sufficient to meet our

financial fitness criteria availab le to it prior to making its commuter authorization effective.

Compliance Disposition

CAT appears to have a favorable compliance disposition. Our search of the Department’s enforcement files found no record or problems involving this company, its own ers, or its key personnel. There are no FAA enforcement actions pending against the air carrier and it has not had any accidents or incidents since its inception . Further, t he FAA reports that CAT is overall a safe operating air carrier with an extremely cooperative management team, and the agency has

no concerns about CAT ’ s proposed expanded operations

.

The applicant states that there are no actions or outstanding judgments against it, its owners, or its key personnel, nor have any charges of unfair, deceptive or anti

- competitive business practices, or of fraud, felony or antitrust violations been brought against any of these parties in the past ten years. There have been no formal complaints filed in the past five years or orders issued in the past ten years finding CAT , its key personnel, or persons having a substantial

interest in it to be in violation of the Statute or of the Federal Aviation Regulations.

Based on the above, we tentatively conclude that CAT has the proper regard for the laws, rules and regulations governing its services to ensure that its aircraft and operations will conform to appli cable safety standards and that acceptable consumer relations practices will be followed.

11 To meet the D epartment’s financial fitness criteria, an applicant should have access to financial resources sufficient to cover its pre

- operating expenses and the expenses that are reasonably projected to be incurred during three months of operations. In calculating a vailable resources, projected revenues may not be used.6

CITIZENSHIP

49 U.S.C. § 41102 requires that authority to engage in air transportation be held only by citizens

of the United States as defined in 49 U.S.C. § 40102(a )(15). That section requires that the president and two

- thirds of the Board of Directors and other managing officers be U.S. citizens

, that at least 75 percent of the outstanding voting stock be owned by U.S. citizens , and that the air

carrier is under th e actual control of U.S. citizens.

As noted earlier, CAT is owned by AHC (99.7 percent) and Mr. Al Hillman (0.3 percent owned),

both U.S. citizens. 12 AHC is owned by Double G, LLC, ( 50.3 percent ), 13 BAG (2 2.7 percent ), 14
Highpoint Investments, LLC (2 6.3 pe rcent ), 15 and Tangies LLC ( 0 .6 percent ). Each of these

entities is incorporated in the United States and owned by citizen of the United States. Further,

all of CAT’s key management and technical personnel are U.S. citizens. Moreover, CAT has provided an affidavit attesting that it is a citizen of the United States within the meaning of the Statute and that it is actually controlled by U.S. citizens. Our review of the applicant has uncovered no reason to suggest that control of CAT rests w ith non

- U.S. citizens.

Based on the above, we tentatively conclude that CAT is a citizen of the United States and is fit, willing, and able to provide the limited scheduled passenger service it proposes as a commuter

air carrier.

OBJECTIONS

When the Dep artment issues an order providing interested parties with the opportunity to show cause why the tentative findings and conclusions set forth the order should not be made final, such parties are normally given 14 days fo llowing the service date of the order to file an objection, with answers to objections due within 7 days thereafter. On February 26, 2010, CAT filed a motion in the docket requesting that the Department shorten the objection period to

5 business days . CAT argues that no interested person wi ll be prejudiced by shortening the answer period, and states that no party filed an answer in response to CAT’s application. Further, CAT has polled all interested parties, and no party has objected to a shortened answer period.

12 Of the 20,000 CAT shares authorized, 16,395 shares are issued and outstanding. AHC holds 16,347 shares, while Mr. Hillman holds 48 shares. Mr. Hillman has issued an irrevocable voting proxy for his shares to

Mr. Michael Hoyle, CAT’s Director, President, and CEO.

13 Double G, LLC is wholly

- owned by Mr. Gordon Spelich, a U.S. citizen.

14 BAG is wholly

- owned by Mr. Michael Hoyle, who also serves as the company’s sole director. As stated previously , Mr. Hoyle is CAT’s Director, President and CEO and a U.S. citizen. BAG provides several services to CAT, including aircraft scheduling, accounting, maintenance, and administrative support services. Further, BAG leases aircraft to CAT and provides han ger and office space to CAT. In addition to its equity interest in CAT, BAG also owns 27 percent of AHC, CAT’s majority shareholder. As of August 2009, CAT owed BAG approximately $47,000. BAG has the option of converting some or all of these accounts pa yable into equity in AHC at any time. Upon any such conversion, AHC will be deemed to have made a corresponding equity contribution into CAT.

15 Highpoint Investments, LLC is wholly

- owned by Mr. Gareth Giesler, a U.S. citizen.7

Generally, it is not the Department’s practice to shorten the answer period to an order to show cause involving an initial application; however, we find CAT’s situation unique in that (1) CAT is an existing air carrier already having operations specifications from the FAA, (2) CAT currently serves the proposed market at a lesser frequency, 16 and (3) there were no objections to both CAT’s application for certificate authority or CAT’s poll for a shortened answer period. Under these circumstances, we will grant CAT’s request for a shortened answer period. Thus, interested persons have 5 business days following the service date of this order to file objections to the tentative conclusions contained herein; answers to objections will be due within 7 days

thereafter. We expect that persons objecting to our tentative findings and conclusions will support their objections with relevant and material facts. We will not entertain general, vague, or unsupported objections. If no substantive objections are filed, we will is sue an order that will make final our tentative findings and conclusions with respect to CAT’s fitness and commuter authority.

EFFECTIVE COMMUTER AUTHORIZATION

CONDITIONS AND LIMITATIONS

In the event that we find CAT fit, willing, and able to conduct th e proposed commuter service, we will issue to it a Commuter Air Carrier Authorization. However, that authorization will not

become effective until the air carrier has fulfilled all requirements for effectiveness as set forth in the Terms, Conditions, and Limitations attached to its authorization. 17 Among other things, this includes our receipt of evidence that the air carrier has been issued Operations Specifications by the FAA authorizing scheduled passenger service under Part 135 of the Federal Aviation Regulations, evidence of liability insurance coverage that meets the requirements of Part 205 of our rules for commuter air carriers, and evidence that CAT continues to have adequate financial

resources available to it to meet our financial fitness criteri a.

Given the relatively limited scope of CAT’s proposed operations

, we propose to limit any authority issued to the applicant to operations conducted under Part 135. Should CAT subsequently desire to acquire and operate larger aircraft that would requi re certification from

the FAA under Part 121 or certificate authority from the Department under 49 U.S.C. §41102 , it must first be determined fit for such operations. 18

Further, we remind CAT of the requirements of 49 U.S.C. § 41110(e). Specifically, that section requires that, once a n air carrier is found fit initially, it must remain fit in order to hold its authority. To be assured that commuter air carriers continue to be fit after effective authority has been issued to them, we require that they suppl y information describing any subsequent substantial changes they may undergo in areas affecting fitness. In this regard, should CAT

16 CAT routinely performs a minimum of five weekly round trip flights with its EMB

- 120 aircraft between Farmingdale, NY, and Atlantic City, NJ. Up to four of these weekly round trips are operated as public charter flights under 14 CFR Part 380 with CAT acting as the direct air carri er and SCG Travel/Harrah’s acting as the

indirect air carrier.

17 We also reserve the right to stay the effectiveness of CAT’s authority if any new information becomes available

to us that warrants such action.

18 We note that the operation of larger airc raft could require the air carrier to have access to additional funds and hire additional management personnel.8

propose any substantial changes in its ownership, management, or operations, it must first comply with the requirements of section 204.5 of our rules. 19 The compliance of the company with this requirement is essential if we are to carry out our responsibilities under the Statute. 20

ACCORDINGLY:

1. We direct all interested persons to show cause why we should not issue an ord er finding that Charter Air Transport , Inc., is fit, willing, and able under 49 U.S.C. § 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft pursuant to Part 135 of the Federal Aviation Regulations.

2. We direct a ny interested persons having objections to the issuance of an order making final any of the proposed findings, conclusions, or the award of authority set forth here to file them

with the U.S. Department of Transportation

, Docket Section

, 1200 New Jersey Avenue, SE

, Washington, D.C. 20590, in Docket DOT

- OST

- 2009

- 0187 and serve them upon all persons

listed in Attachment A no later than 5 business days after the service date of this order; answers to objections shall be filed no later than 7 days thereafter

.

3. If timely and properly supported objections are filed, we will accord full consideration to the matters or issues raised by the objections before we take further action. 21

4. In the event that no objections are filed, we will consider all further pro cedural steps to be waived, and we will enter an order making final our tentative findings and conclusions set out here and awarding Charter Air Transport , Inc., a Commuter Air Carrier Authorization, subject to the attached specimen Terms, Conditions, and Limitations.

5. We will serve a copy of this order on the persons listed in A ttachment A

.

19 The air carrier may contact our Air Carrier Fitness Division to report proposed substantial changes in its operations, ownership, or manage ment, and to determine what additional information, if any, will be required under section 204.5. Moreover, by notice dated July 21, 1998, the Department requested air carriers to provide a 30

- day advance notification of any proposed change in ownership, restructuring, or recapitalization. If the air carrier fails to file the information or if the information fails to demonstrate that the air carrier will continue to be fit upon implementation of the substantial change, the Department may take such action as is appropriate, including enforcement action or steps to modify, suspend, or revoke the air carrier's commuter authority.

20 We also remind CAT about the requirements of section 204.7 of our rules. This section provides, among other things, that (1) the commuter authority granted to a company shall be revoked if the company does not commence actual flying operations under that authority within one year of the date of the Department’s determination of its fitness; (2) if the company commences operation s for which it was found fit and subsequently ceases such operations, it may not resume scheduled passenger operations unless its fitness has been redetermined; and (3) if the company does not resume such operations within one year of its cessation, its au thority shall be revoked for dormancy.

21 Since we have provided for the filing of objections to this order, we will not entertain petitions for

reconsideration.9

6. We will publish a summary of this order in the Federal Register.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

and International Affairs

An electronic version of this document is available on the World Wide Web at http:// www.regulations.govAttachment Specimen 

### Terms, Conditions, and Limitations

CHARTER AIR TRANSPORT , INC.

is authorized to engage in scheduled passenger air transportation operations as a commuter air carrier.

This authority is subject to the following provisions:

(1) The authority to conduct scheduled passenger operations will not become effective until six (business) days after the Department has received the following documents; provided

, however , that the Department may stay the effectiveness of this authority at an y time prior to that date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications authorizing such operations from the Federal Aviation Administration (FAA).

(b) A certificate of insurance on OST Form 6410 evidencing liability i nsurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has undergone in its ownership, key personnel, operating plans, financial posture, or compliance history, since the date of

th e Show Cause Order in this case.

(d) A revised list of pre

- operating expenses already paid and those remaining to be paid, as well as independent verification that the holder has available to it funds sufficient to cover any remaining pre

- operating expens es and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind (i.e., cash, check, or credit card) or issue tickets for scheduled passenger operations, and any advertisement or listing of flights by the holder must prominently state: "This service is subject to receipt of government operating authority."

(3) The holder shall at all times conduct its ope rations in accordance with the requirements of 14 CFR Part 298 and any other regulations prescribed by the Department of Transportation for the services authorized here, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder’s authority is limited to operations conducted pursuant to Part 135 of the Federal Aviation Regulations. In the event that the holder wishes to institute operations that would require

P

art 121 certification from the FAA it must first be determined fit for such operations.2

(5) The holder may not operate aircraft designed to have a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds.



### (6

) The holder's authority is effective only to the extent that such operations are also authorized by the FAA, and comply with all Department of Transportation requirements concerning security.

(7

) The holder shall at all times remain a "Citizen of the United States" as required by 49 U.S.C. 40102(a)(15).

(8

) The holder shall maintain in effect liability insurance coverage as required under 14 CFR

Part 205. Failure to maintain such insurance coverage will render this authority ineffective, and this

or other failure to comply with the provisions of Subtitle VII of Title 49 of the United States Code or the Department's regulations shall be sufficient grounds to revoke this authority.

( 9 ) In the event that the holder receives effective scheduled passenger authority, the following additional conditions will apply:

(a) The holder may reduce or terminate service at any point or between any two points, subject to compliance with the provisions of 49 U.S.C. 41734 and all orders and regulations issued by the Department of Transportation under that section.

(b) The holder may not provide scheduled passenger air transportation to or from Dallas (Love Field), Texas, except within the limits set forth in section 29 of the International Air Transportation C ompetition Act of 1979, as amended by section 337 of the Department of Transportation and Related Agencies Appropriations Act, 1998.

(1 0 ) Should the holder propose any substantial changes in its ownership, management, or operations (as that term is defin ed in 14 CFR 204.2(l)), it must first comply with the requirements of

14 CFR 204.5.

(1 1 ) In the event that the holder does not commence actual flying operations as a commuter air carrier under this authority within one year of the date of the Department's determination of its fitness, its commuter authority shall be revoked for dormancy. Further, in the event that the holder commences but subsequently ceases all scheduled passenger operations, the authority granted here shall be suspended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume such operations within one year of its cessation, its commuter authority shall be revoked for dormancy.A ttachment A

SERVICE LIST FOR CHARTER AIR TRANSPORT, INC.

MR DAVID A LUCAS
CHARTER AIR TRANSPOR T INC
2301 NORTH MARGINAL ROAD
CLEVELAND OH 44143 SUSAN B JOLLIE
COUNSEL FOR CHARTER AIR

TRANSPORT INC
7503 WALTON LANE

ANNANDALE VA 22003 PETER LYNCH AGC

- 300
ASST CHIEF COUNSEL F OR
ENFORCEMENT
FEDERAL AVIATION ADMINISTRATION
800 INDEPENDENCE AVE SW
WASHINGTON DC 20591

BERNARD STANKUS
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 MARIANNE SEGUIN
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 CLAY MORITZ
OFFICE OF AIRLINE IN FORMATION
DOT/RITA/BTS RTS

- 42
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590

SAMUEL PODBERESKY
U.S. DEPARTMENT OF

TRANSPORTATION
ASSISTANT GENERAL CO UNSEL

FOR AVIATION AND PRO CEEDINGS
1200 NEW JERSEY AVE SE
WASHINGTON DC 20590 MR WILLIAM J WEBER
CERTIFICATION SECTIO N
MANAGER
FAA AFS

- 900
45005 AVIATION DRIVE SUITE 131

D ULLES VA 20166